New Income Tax Act 2025 Introduces Simplified Rules and Revised Tax Provisions from April 2026

The Income Tax Act, 1961 will be replaced by the simplified Income Tax Act, 2025, effective April 1, 2026, reducing sections from over 500 to 333 to improve clarity. Key changes include revised PAN requirements for high-value transactions, an annual Rs 10 lakh threshold for cash deposits and withdrawals, expanded HRA benefits to more cities, and new tax treatments for share buybacks and securities transactions. The new tax regime defaults for taxpayers unless the old system is chosen.